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Suppose your expectations regarding the stock market are as follows: State of the Economy Probability Boom 0.4 Normal growth 0.3 Recession 0.3 HPR 328 20
Suppose your expectations regarding the stock market are as follows: State of the Economy Probability Boom 0.4 Normal growth 0.3 Recession 0.3 HPR 328 20 -16 E(-) = Pdr67 Var(r) = x2 = PO)[C) E(-)P SD(r) = 0 = V Var () Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Mean Standard deviation
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